Lam Research Corporation today announced financial results for the
quarter ended March 28, 2010. Revenue for the period was $632.8 million,
gross margin was $292.9 million and net income was $120.3 million, or
$0.94 per diluted share, compared to revenue of $487.2 million, gross
margin of $223.2 million and net income of $69.6 million, or $0.54 per
diluted share, for the December 2009 quarter. Shipments for the March
2010 quarter were $735 million compared to $519 million during the
December 2009 quarter.

The Company's ongoing results for the December 2009 quarter excluded
certain costs for previously announced restructuring activities, the
reversal of accrued liabilities due to final settlement of the remaining
liabilities for Internal Revenue Code Section 409A related expenses, and
the impairment of an investment. There were no adjustments to U.S. GAAP
results to determine "ongoing" results for the March 2010 quarter.
Management uses the presentation of ongoing gross margin, ongoing
operating expenses, ongoing operating income, ongoing operating margin,
ongoing net income, and ongoing net income per diluted share to evaluate
the Company's operating and financial results. The Company believes the
presentation of ongoing results is useful to investors for analyzing
business trends and comparing performance to prior periods, along with
enhancing the investor's ability to view the Company's results from
management's perspective. A table presenting a reconciliation of ongoing
results to results under U.S. GAAP is included at the end of this press
release and on the Company's web site.

Ongoing net income was $120.3 million, or $0.94 per diluted share in the
March 2010 quarter compared to ongoing net income of $60.7 million, or
$0.47 per diluted share, for the December 2009 quarter. Ongoing gross
margin for the March 2010 quarter was $292.9 million or 46.3%, compared
to ongoing gross margin of $218.5 million, or 44.8%, for the December
2009 quarter. The sequential increase in gross margin was primarily due
to improved factory utilization as a result of increased business volume
and a more favorable product mix. Ongoing operating expenses for the
March 2010 quarter remained essentially flat compared with the December
2009 quarter.

Lam Announces Financial Results for the March 2010 Quarter

The geographic distribution of shipments and revenue during the March
2010 quarter is shown in the following table:

Region

Shipments

Revenue

North America

8

%

10

%

Europe

5

%

6

%

Japan

11

%

11

%

Korea

27

%

24

%

Taiwan

37

%

33

%

Asia Pacific

12

%

16

%

Cash and cash equivalents, short-term investments and restricted cash
and investments balances were $843.8 million at the end of the March
2010 quarter, compared to $830.6 million at the end of the December 2009
quarter. Cash flows from operating activities were approximately $109.3
million during the March 2010 quarter. Deferred revenue and deferred
profit balances at the end of the March 2010 quarter were $238.4 million
and $138.2 million, respectively. Lam's deferred revenue balance does
not include shipments to Japanese customers, to whom title does not
transfer until customer acceptance. Shipments to Japanese customers are
classified as inventory at cost until the time of acceptance. The
anticipated future revenue from shipments to Japanese customers was
approximately $23 million as of March 28, 2010.

"Shipments for the March 2010 quarter represented an all-time high for
Lam Research reflecting market share gains in both our etch and clean
businesses, supported by strong operational performance of the factory
and supply chain," said Steve Newberry, Lam's president and chief
executive officer. "The continued success of the spin-clean business,
evidenced by the recent shipment of our 3,000th spin-clean
process chamber, is complemented by our linear-clean and plasma-based
bevel clean technologies. Our clean products represent a technology and
productivity leadership portfolio that is advancing the success of our
adjacent-market growth strategy," Newberry concluded.

Lam Announces Financial Results for the March 2010 Quarter

Statements made in this press release that are not statements of
historical fact are forward-looking statements and are subject to the
safe harbor provisions created by the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements relate, but are not
limited, to the anticipated revenue from shipments to Japanese
customers, the continued success of our spin-clean business, and our
continued ability to maintain strong operational performance of our
factory and supply chain and to execute successfully our adjacent market
growth strategy. Some factors that may affect these forward-looking
statements include: business conditions in the semiconductor industry
and the overall economy; the efficacy of Lam's plans for reacting to
those conditions; changing customer demands; the actions of Lam's
competitors; and the challenges presented by the development and
marketing of new products. These forward-looking statements are based on
current expectations and are subject to uncertainties and changes in
condition, significance, value and effect as well as other risks
detailed in documents filed by us with the Securities and Exchange
Commission, including specifically our report on Form 10-K for the year
ended June 28, 2009 and the reports on Form 10-Q for the three months
ended September 27, 2009 and December 27, 2009. These uncertainties and
changes could cause actual results to vary from expectations. The
Company undertakes no obligation to update the information or statements
made in this press release.

Lam Research Corporation is a major provider of wafer fabrication
equipment and services to the world's semiconductor industry. Lam's
common stock trades on The NASDAQ Global Select MarketSM
under the symbol LRCX. Lam is a NASDAQ-100(R) company. For more
information, visit www.lamresearch.com.